Ford takes axe to 35,000 jobs

THE FORD motors giant is to cut 35,000 jobs worldwide - 22,000 of them in North America - and close three assembly plants in North America. Chief Operating Officer Nick Scheele said the world's second-largest automobile maker would close assembly plants in Edison, New Jersey; Hazelwood, Missouri; and Oakville, Ontario. The Canadian and New Jersey plants build pick-ups, while the Missouri plant builds the Ford Explorer sport utility vehicle.

Scheele also said Ford would close two parts plants in Cleveland, Ohio, and Dearborn, Michigan. In addition, 11 plants will undergo major restructuring, including shift cuts, with production cuts at nine additional plants.

The cuts come as part of an overhaul of the company aimed at improving profits by $9bn by the middle of the decade. Ford said it would take an after-tax charge of about $4.1bn in the fourth quarter of 2001 in the restructuring drive.

It said it would cut North American production capacity by 16%, to 4.8m vehicles from 5.7m vehicles, and cut four vehicles - the Ford Escort, the Mercury Cougar, the Mercury Villager and the Lincoln Continental - from its range.